Biden withdraws US$27.4 billion in spending cuts proposed by Trump

Mr Joe Biden said in a letter to Congress that he was reversing all 73 spending cuts that Mr Donald Trump had requested,
Mr Joe Biden said in a letter to Congress that he was reversing all 73 spending cuts that Mr Donald Trump had requested,PHOTO: EPA-EFE

WASHINGTON (BLOOMBERG) - President Joe Biden on Sunday (Jan 31) withdrew all the spending cuts proposed by former President Donald Trump during his final days in office.

Mr Biden said in a letter to Congress that he was reversing all 73 spending cuts that Mr Trump had requested, which touched virtually every cabinet-level agency as well as federal programs such as the National Endowments of the Arts and Humanities.

Under the 1974 Budget and Impoundment Control Act, the president can request that Congress rescind budget authority that it had previously approved.

The cuts, known as rescissions, totalled US$27.4 billion (S$36.4 billion), according to a Jan 14 letter to Congress from the Trump White House.

The proposed cuts had come after Mr Trump grew frustrated with some of the spending included in a December spending bill.

"I will sign the Omnibus and Covid package with a strong message that makes clear to Congress that wasteful items need to be removed," Mr Trump said in a statement as he signed the bill into law in late December.

"I will send back to Congress a redlined version, item by item, accompanied by the formal rescission request to Congress insisting that those funds be removed from the bill."

The proposed cuts would have also hit the legislative branch of the federal government, the District of Columbia, the Peace Corps and the US Agency for International Development, among other initiatives.